Oilseeds Market Size

Oilseeds Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

Oilseeds market is expected to reach USD 197.14 billion by 2024, and is expected to reach USD 260.08 billion by 2025. This growth is expected to be reflected in the CAGR (compound annual growth rate) of 3.53% during the forecast period. This growth is mainly due to the increased demand for oilseeds for food, feed, and biofuel. There is also a growing awareness of the health benefits of consuming oilseeds, such as omega-3 fatty acids and plant-based proteins. Agricultural practices, such as precision farming and GMOs, are improving the efficiency and productivity of agricultural production, which will also help to increase market growth. The major players in the oilseeds industry, such as Cargill, Archer Daniels Midland, and Bunge, are launching strategic initiatives such as mergers and acquisitions, and investing in the development of new processing methods. Cargill's recent investment in sustainable sourcing, Bunge's collaboration with biotech companies to develop high-yield oilseed varieties are two examples of the measures that these companies are taking to take advantage of the growing market.

Regional Market Size

Regional Deep Dive

Oilseeds market is characterized by diverse regional dynamics, influenced by agricultural practices, preferences and regulatory frameworks. In North America, for example, the market is dominated by advanced agricultural technology and a strong demand for biofuels, while in Europe the focus is on sustainable production and organic agriculture. In Asia-Pacific, the population is growing and the diet is changing, while in the Middle East and Africa, there is a struggle with water scarcity and land use. Brazil and Argentina are the main producers in South America, taking advantage of a favourable climate and good export opportunities.

North America

• The United States Department of Agriculture has adopted new guidelines for sustainable farming that are expected to increase the production of oil seeds such as soyabean and canola.
• The development of genetically modified organisms has made possible higher yields and resistance to pests. Companies like Monsanto, now a part of Bayer, are the leading manufacturers of these seeds.
• The growing demand for plant-based proteins and biofuels is reshaping the oilseeds market, and companies like Archer Daniels Midland are investing heavily in the development of new production facilities.

Europe

• The Green Deal, which aims to reduce the use of pesticides and promote organic farming, has affected the cultivation of vegetable oilseeds and encouraged the cultivation of other vegetable oilseeds.
• A number of important companies such as BASF and Syngenta are concentrating on the development of sustainable oil seed varieties in compliance with the European regulations, thus driving innovation in the market.
• The increasing demand for vegetable foods has led to a rise in the demand for oilseeds, especially rapeseed and sunflower, which are promoted by various government measures.

Asia-Pacific

• A growing middle class in China is putting a heavy demand on edible oils. Consequently, China is importing more and more oil seeds from the United States and Brazil.
• The National Mission on Oilseeds and Oil Palm was launched in India in September 2010 with the aim of increasing domestic production and reducing the reliance on imports.
• The oil yields of the oleaginous crops are increased by the use of precision agriculture in countries like Australia.

MEA

• In the AU’s Agenda 2063, the agricultural transformation is a priority. Oilseed production is to be increased in countries like South Africa and Nigeria.
• The problem of water scarcity continues to be a serious problem for the countries, and the governments are investing in the development of irrigation and sustainable methods of producing oil.
• The petro-chemical industry has also been expanding its operations in the region, and companies like Olam are expanding their operations.

Latin America

• Brazil and Argentina are the two principal oil-seed producers. The Brazilian government is promoting sustainable farming and increasing the country’s export capacity.
• In these countries, the agro-industrial complexes are growing and the processing of oilseeds is facilitated, producing products of higher value for both domestic and international markets.
• It is expected that the agreements signed by the MERCOSUR and the European Union will strengthen the position of Latin American oilseeds in the world market.

Did You Know?

“Soybeans are the most important oil-bearing seed in the world, and account for over fifty per cent of the world’s total oil-bearing crop.” — Food and Agriculture Organization (FAO)

Segmental Market Size

The oil-seeds market is of fundamental importance to the world economy, and is currently growing steadily, mainly because of the growing demand for vegetable oil and for the protein-rich meals. The consumption of vegetable products is on the increase, as is the biofuel industry, which depends on the use of oil-seeds like canola and soybeans. In addition, the implementation of sustainable agriculture by the authorities is promoting the sector. The consumers and the industry are both demanding more and more sustainable agro-ecological products.

At the moment the use of oil seeds is in its most advanced stage. Leading companies such as Cargill and ADM are investing heavily in sustainable sourcing and processing. These seeds are used for human food, animal feed and biofuels, mainly in North and South America. The trend towards a more vegetable diet and the focus on sustainable exploitation of natural resources are driving the development. New developments in genetic engineering and precision agriculture are shaping the future of the industry, ensuring higher yields and better use of resources.

Future Outlook

The Oilseeds Market is expected to grow at a CAGR of 3.53% from 2024 to 2030, from $197.10 billion to $260.08 billion. The growth will be driven by the increasing demand for vegetable oils, which will be used in the production of biofuels and animal feed. Moreover, vegetable oils will be the main source of oil consumption in the world, accounting for more than 70% of oil consumption in the world by 2030, according to FAO reports.

Moreover, the development of new agricultural technology, such as the use of genetically modified organisms (GMOs) and precision agriculture, is expected to increase crop yields and reduce costs, thereby further driving market growth. Also, government initiatives to encourage sustainable agriculture and reduce the carbon footprint of agricultural products are likely to support the oilseeds industry. Emerging trends, such as the rising popularity of plant-based diets and the expansion of the biofuel market, are also expected to play an important role in the future of the oilseeds market. In the meantime, the market’s players will have to keep up with the changing regulatory framework and consumer preferences to take advantage of the opportunities in the oilseeds market.